Global markets have had a fascinating ride over the Australian summer break with the Trump reflation rally and mounting uncertainty over geopolitical stability and trade agreements.
But back in little Australia there remain some key challenges and concerns for Australia’s domestic economy, not least among them the property market conditions in the major cities.
Pete, a chartered accountant, is an insightful and refreshingly blunt commentator on the Australian property market. He’s unafraid of calling out risks in the system and some of the more concerning price inflation patterns in parts of the housing market.
Most economists are expecting some kind of slowdown in the Australian property market this year, particularly as apartment supply continues to come online in Sydney and Melbourne. With the major banks so heavily exposed to the mortgage market, the housing inflation being a key consideration for the RBA, and the construction boom in the eastern states being a major employment driver over recent years, a property market slowdown — or something worse — could have major ramifications for the broader economy.
Wargent has recently been doing some work for hedge funds which remain interested in understanding what’s happening in the Australian market. On the show, he shares his views on the drivers of price growth and the evidence of trouble brewing in the market.
We recorded this after CoreLogic data showed earlier this week that house price growth in Sydney had run at an annualised rate of 16% over the past 12 months, yet again stoking the conversation about housing bubbles and affordability.
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